Question 1

Which of the following statements is correct?

Accepted Answer

A)   Saving is high in less developed nations because the opportunities for consumption are limited
B)   For developing nations, the annual rate of population increase is about 5 percent
C)   Most of the labor forces of developing nations are engaged in light industrial production
D)   Investment is low in developing nations, making it difficult to increase productivity and incomesE) None of the above
F) B) and C)

Question 2

The annual global revenue of Walmart in 2010 was $405 billion, which was greater than the national incomes of all but _________ nations in the world.

Accepted Answer

A)   10
B)   23
C)   46
D)   35E) None of the above
F) B) and D)

Question 3

Which of the following countries had the highest per capita energy consumption in 2009?

Accepted Answer

A)   Brazil
B)   China
C)   Japan
D)   United StatesE) C) and D)
F) B) and D)

Question 4

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards which are given to that person, this person is most likely expressing a:

Accepted Answer

A)   Description of the vicious cycle of poverty
B)   Theory of exploitation and dependence
C)   Capricious view of the universe
D)   Rationale for neocolonialismE) C) and D)
F) A) and B)

Question 5

The demographic transition view of population and growth in DVCs is that:

Accepted Answer

A)   The most important factor affecting population growth in DVCs are demographic changes among the elderly
B)   Slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations
C)   Reduced birthrates must come first in DVCs, and then higher per capita incomes will follow
D)   Higher per capita incomes must come first in DVCs, and then reduced birth rates will followE) B) and D)
F) B) and C)

Question 6

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Accepted Answer

A)   Low trade barriers
B)   Large international debts
C)   An increase in the rate of saving
D)   A slowing of the population growthE) None of the above
F) A) and B)

Question 7

Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:

Accepted Answer

A)   Increased by $25 per person
B)   Decreased by $25 per person
C)   Increased by $533 per person
D)   Decreased by $533 per personE) C) and D)
F) B) and D)

Question 8

A major complaint of DVCs about foreign aid from IACs is that it:

Accepted Answer

A)   Is allocated just to the poorest nations
B)   Is equally borne by the donor nations
C)   Needs to be quantitatively larger for DVCs
D)   Takes too long a time to reach DVCsE) A) and B)
F) A) and C)

Question 9

Government can play a major positive role in the early stage of economic development by:

Accepted Answer

A)   Providing an adequate infrastructure
B)   Establishing price controls for products
C)   Promoting exports by subsidizing them
D)   Creating marketing boards for export productsE) None of the above
F) All of the above

Question 10

A major criticism of foreign aid to developing nations is that it:

Accepted Answer

A)   Is capital saving rather than capital intensive
B)   Provides incentives for a brain drain
C)   Encourages corruption and misuse of funds
D)   Gives too much power and control to the International Monetary FundE) A) and B)
F) C) and D)

Question 11

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Accepted Answer

A) True 
 B)False

Question 12

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:

Accepted Answer

A)   Shift outward the production possibilities curve for a nation
B)   Increase the demand for and decrease the supply of productive resources
C)   Make a nation less productive because of the need to coordinate the increased quantity of resources
D)   Lead to increased population growth that will decrease the per capita growth in a nationE) C) and D)
F) None of the above

Question 13

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an example of a socio-cultural impediment to economic growth?

Accepted Answer

A)   Tribal allegiances that take precedence over national unity
B)   Religious beliefs and practices that severely limit economic activity
C)   Migration of labor resources from agricultural to urban areas
D)   The existence of a system for allocating jobs based on caste or traditionE) None of the above
F) A) and B)

Question 15

Many economists believe that the key to breaking the vicious circle of poverty is to:

Accepted Answer

A)   Cut down the mortality rates in poor nations
B)   Reduce the birth rates in poor nations
C)   Increase the mobility of labor and migration
D)   Increase the rate of capital accumulation in poor nationsE) All of the above
F) None of the above

Question 16

China is very close to catching up with the United States in its standard of living as measured by per capita income.

Accepted Answer

A) True 
 B)False

Question 17

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

Accepted Answer

A) True 
 B)False

Question 18

All developing countries suffer from a critical shortage of:

Accepted Answer

A)   Land
B)   Population
C)   Capital goods
D)   Government regulationE) B) and C)
F) A) and D)

Question 19

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

Accepted Answer

A) True 
 B)False

Question 20

The fertility rates-the number of children per woman's lifetime-in many DVC (developing countries)  are:

Accepted Answer

A)   Rising slowly
B)   Rising fast
C)   Staying constant
D)   DecliningE) B) and D)
F) B) and C)

Exam 22: The Economics of Developing Countries

The demographic transition view of population and growth in DVCs is that:

Correct AnswerverifiedShow Answer

The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund.

Correct AnswerverifiedShow Answer

Which of the following is considered to be a severe obstacle to economic growth for DVCs?

Correct AnswerverifiedShow Answer

The annual global revenue of Walmart in 2010 was $405 billion, which was greater than the national incomes of all but _________ nations in the world.

Correct AnswerverifiedShow Answer

Japan is a nation that achieved a high standard of living despite having a very limited supply of natural resources.

Correct AnswerverifiedShow Answer

The fertility rates-the number of children per woman's lifetime-in many DVC (developing countries) are:

Correct AnswerverifiedShow Answer

The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity.

Correct AnswerverifiedShow Answer

Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries.

Correct AnswerverifiedShow Answer

Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:

Correct AnswerverifiedShow Answer

A major complaint of DVCs about foreign aid from IACs is that it:

Correct AnswerverifiedShow Answer

China is very close to catching up with the United States in its standard of living as measured by per capita income.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Which of the following countries had the highest per capita energy consumption in 2009?

Correct AnswerverifiedShow Answer

Which of the following is not an example of a socio-cultural impediment to economic growth?

Correct AnswerverifiedShow Answer

Expanding the supplies of raw materials, capital equipment, effective labor, and technological knowledge will:

Correct AnswerverifiedShow Answer

Government can play a major positive role in the early stage of economic development by:

Correct AnswerverifiedShow Answer

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards which are given to that person, this person is most likely expressing a:

Correct AnswerverifiedShow Answer

Many economists believe that the key to breaking the vicious circle of poverty is to:

Correct AnswerverifiedShow Answer

A major criticism of foreign aid to developing nations is that it:

Correct AnswerverifiedShow Answer

All developing countries suffer from a critical shortage of:

Correct AnswerverifiedShow Answer

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